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Human Capital, Investment and Migration in an Integrated Europe

Author

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  • Burda, Michael C
  • Wyplosz, Charles

Abstract

The short- and longer-term regional consequences of migration for European aggregate supply are examined in a simple model in which human capital enters the production function externally. The planner chooses a reallocation of population across East and West that cannot be replicated by the market without taxes or subsidies. The market solution in this model with free migration is always associated with an efficiency loss and might lead to the `Mezzogiorno syndrome' in the East.

Suggested Citation

  • Burda, Michael C & Wyplosz, Charles, 1991. "Human Capital, Investment and Migration in an Integrated Europe," CEPR Discussion Papers 614, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:614
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    Keywords

    Aggregate Supply; Eastern Europe; Investment; Migration;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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